Explanation:
The correct answer is D.
The Advanced Measurement Approach (AMA) is a methodology introduced under Basel II specifically for calculating the capital requirements for Operational Risk, not credit risk.
To calculate Credit Risk capital under Basel II, banks can use one of the following three approaches:
Q.2738 Which of the following approaches is NOT appropriate for calculating credit risk capital under Basel II?
A
Standardized Approach
B
Foundation IRB Approach
C
Advanced IRB Approach
D
Advanced Measurement Approach
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